For Immediate Release

Chicago, IL – February 23, 2024 – Stocks in this week’s article are Netflix, Inc NFLX, Meta Platforms, Inc META, Deckers Outdoor Corp. DECK and GigaCloud Technology GCT.

Grab These 4 Prime Liquid Stocks to Boost Your Portfolio

Investors eyeing substantial returns may find adding stocks with robust liquidity levels a boon, as it fosters business expansion.

Liquidity is a key determinant of a company’s ability to meet debt obligations by converting assets into liquid cash and equivalents. These stocks have always drawn investor attention owing to their potential to deliver robust returns.

However, it’s imperative to approach such stocks cautiously. While high liquidity levels may indicate an efficient clearance of dues compared to peers, it may also hint at underutilized assets.

Hence, efficiency alongside liquidity is ideal for identifying potential winners.

Key Measures for Identifying Liquid Stocks

Current Ratio: This ratio gauges a company’s potential to meet short- and long-term debt obligations by measuring current assets against current liabilities. A ratio below 1 signifies more liabilities than assets, while a range of 1-3 is considered optimal.

Quick Ratio: Unlike the current ratio, this measures a company’s ability to pay short-term obligations by considering quick assets relative to current liabilities. A quick ratio of more than 1 is desirable.

Cash Ratio: This conservative ratio considers cash and cash equivalents and invested funds relative to current liabilities. A ratio greater than 1 is preferred.

While a ratio greater than 1 is desirable, it may not always represent a company’s financial stability.

These four stocks out of 16 have qualified for the screen:

Netflix, Inc is recognized as a trailblazer in the streaming space with 260.28 million paid subscribers globally as of the fourth quarter of 2023. The company’s fourth-quarter 2023 addition of 13.12 million paid subscribers globally, along with a 1% increase in average revenue per subscription, has been attributed to paid subscription-sharing offering (part of its password-sharing crackdown), recent price changes, and overall business strength.

Despite stiff competition in the streaming space, Netflix is anticipated to continue its dominance, backed by a diverse content portfolio and substantial investments in localized and foreign-language content production and distribution. The Zacks Consensus Estimate for Netflix’s 2024 bottom line stands at earnings of $16.93 per share, up 6% in the past 60 days. The company boasts a Growth Score of B and a trailing four-quarter earnings surprise of 5.4%, on average.

Meta Platforms, Inc stands as the world’s largest social media platform, benefitting from consistent user growth across all regions, especially in Asia Pacific. Increased engagement on its other platforms like Instagram, WhatsApp, Messenger and Facebook has been a significant growth driver. META’s utilization of AI to recommend Reels content has propelled traffic on Instagram and Facebook. Its innovative portfolio including Threads, Reels, Llama 2, Ray-Ban Meta smart glass and mixed reality device Quest 3 is poised to foster prospects.

Nonetheless, challenging macroeconomic conditions are a concern for Meta’s advertising revenues. The Zacks Consensus Estimate for 2024 earnings is pegged at $19.62 per share, reflecting an 11.2% increase in the past 60 days. META holds a Growth Score of A and a trailing four-quarter earnings surprise of 19.7%, on average.

Deckers Outdoor Corp. stands as a leading designer, manufacturer and brand manager of innovative, niche footwear and accessories catering to outdoor sports and lifestyle activities. The company primarily sells products under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands. Strength in the UGG and HOKA brands is propelling top-line performance.

The company is witnessing robust gains from the direct-to-consumer (“DTC”) channels, brand growth, a strong balance sheet, and a stable operating model. Continued momentum in its global wholesale business, driven by consumer demand in both domestic and international markets, is an encouraging sign. The Zacks Consensus Estimate for its fiscal 2024 bottom line stands at $26.85 per share, up 13.7% in the past 60 days. DECK holds a Growth Score of A and a trailing four-quarter earnings surprise of 32.1%, on average.

GigaCloud Technology offers end-to-end B2B e-commerce solutions for ample parcel merchandise globally. The company’s marketplace facilitates cross-border transactions by connecting manufacturers (mainly in Asia) with resellers (in the United States, Asia and Europe). The Zacks Consensus Estimate for its 2023 bottom line remains at $1.77 per share, unchanged in the past 60 days. GCT boasts a Growth Score of A.

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